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The President of El Salvador to Bitcoin Investors: Your BTC Investment Is Safe and Will Grow Massively After the Bear Market

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El Salvador’s president has some advice for bitcoin investors. He believes that investing in the world’s largest cryptocurrency is risk-free and that it will “immensely grow” following the bear market.

El Salvador’s president, Nayib Bukele, has spoken out about bitcoin investments in the wake of the cryptocurrency’s steep decline.

Since September last year, when Bitcoin became legal tender alongside the US dollar, El Salvador has purchased 2,301 bitcoins. El Salvador’s bitcoin investment has reportedly lost 50% of its value, or more than $50 million, as the price of bitcoin has plummeted.

“I see that some people are worried or anxious about the bitcoin market price,” Bukele tweeted Saturday, elaborating:

My advice: stop looking at the graph and enjoy life. If you invested in BTC, your investment is safe and its value will immensely grow after the bear market. Patience is the key.

Many people have voiced concerns about El Salvador’s fiscal health due to a large bitcoin position on the country’s balance sheet.

The Salvadoran finance minister, Alejandro Zelaya, dismissed concerns last week, stating that the “fiscal risk is extremely minimal.” He added: “When they tell me that the fiscal risk for El Salvador because of bitcoin is really high, the only thing I can do is smile.”

Early this weekend, Bitcoin fell to a level not seen since 2020. At the time of writing, BTC was trading at $20,141, up 12% in the last 24 hours and 33% in the last seven days.

Some people, such as bitcoin bull Michael Saylor and Skybridge Capital founder Anthony Scaramucci, share Bukeke’s optimism.

Others, on the other hand, are pessimistic about bitcoin’s future. BTC is expected to fall to $12K, according to Mad Money host Jim Cramer. Jeffrey Gundlach of Doubleline Capital said he wouldn’t be surprised if bitcoin fell to $10,000. Robert Kiyosaki, author of Rich Dad, Poor Dad, predicted that bitcoin would bottom out at $9,000. Bitcoin, according to Guggenheim CIO Scott Minerd, could fall to $8,000.

Cryptocurrency is “not sufficiently stable to be a good means of payment,” according to the Governor of the Bank of Jamaica.

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The governor of the Jamaican central bank has issued a warning to those who are using or planning to use cryptocurrencies to be aware of the risks involved. The governor went on to say that the unpredictability of cryptocurrencies means they can’t be used as a medium of exchange.

Richard Byles, the governor of the Bank of Jamaica, has warned those who use or plan to use cryptocurrencies to be wary of the volatile nature of the assets. Because the value of cryptocurrency is “not sufficiently stable to be a good means of payment,” Byles considers it an investment instrument rather than a medium of exchange.

Byles, who spoke at a digital and cryptocurrency conference, said the Jamaican central bank takes time to warn people about the volatility of privately issued digital currencies, according to remarks published by the Jamaica Information Service (JIS). He also stated that his organization does not believe cryptocurrency is a good way to settle transactions. He added:

So, if you’re, hopefully, a sophisticated investor [who] can understand cryptocurrency, go ahead and use it. But we don’t see it as a currency that is good for transactions and for making payments.

According to the governor, the Jamaican central bank only backs its central bank digital currency (CBDC). He also emphasized that, unlike cryptocurrencies whose value can either go up or down, “a dollar that you have in your pocket today is the dollar that you have in your pocket tomorrow.”

As previously reported by Bitcoin.com News, the Bank of Jamaica announced on December 31, 2021, that it completed testing of its CBDC. Following the completion of this phase, the bank is now spearheading the implementation of Jamaica’s CBDC, the JIS report said.

Meanwhile, Mario Griffiths, the bank’s director for payment systems and policy, is quoted in the same report stating that the Bank of Jamaica plans to continue issuing cautionary statements that warn people of the risks that are associated with cryptocurrencies.

Ukraine has become a member of the European Blockchain Partnership as an observer.

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The European Blockchain Partnership has granted Ukraine observer status (EBP). Officials in Kyiv hope that the move will make it easier for the Ukrainian government to implement blockchain technologies and lead to the adoption of more efficient crypto regulations.

The European Blockchain Partnership (EBP), an initiative to develop an EU strategy on blockchain and build blockchain infrastructure for public services, has accepted Ukraine as an observer. Ukrainian officials and members of the crypto community have been lobbying for observer status as a step toward full membership.

Oleksii Zhmerenetskyi, chairman of the Blockchain4Ukraine inter-factional association of Ukrainian lawmakers, and Konstantin Yarmolenko, chairman of the “Virtual Assets of Ukraine” non-government organization, spearheaded the push for the country’s admission to the EBP.

In March this year, they sent letters to the President of the European Commission Ursula von der Leyen and other EU representatives, urging for the establishment of a common European blockchain infrastructure based on the EBP.

In response to their call, the head of the executive body in Brussels confirmed the prospects of Ukraine’s accession as an observer. The country has now become the third non-EU nation participating in the initiative, besides Norway and Liechtenstein.

“Ukraine’s integration into the European Blockchain Partnership will strengthen joint work on the introduction of blockchain technology in government registries and services,” Ukraine’s deputy minister of digital transformation Alexander Bornyakov was quoted by his department as stating.

Bornyakov, who represents the Eastern European nation in the EBP, recently took part in an online meeting of all members. He added that the accession will also promote “a highly efficient regulatory environment, including for the virtual assets market” in the country.

According to the head of Blockchain4Ukraine, Zhmerenetskyi, by joining the blockchain partnership, Ukraine will be in a better position to push for recognition of its higher education diplomas and the driver’s licenses of millions of Ukrainian refugees in Europe.

Panama’s President partially vetoes a crypto-law passed by the country’s legislature.

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The president of Panama, Laurentino Cortizo, has used his veto power to raise a number of objections to the recently passed cryptocurrency law. The president’s remarks are limited to a few articles and have no bearing on the law as a whole. However, these sections of the bill will have to be re-examined in light of Cortizo’s observations.

Laurentino Cortizo, the president of Panama, has vetoed the recently approved cryptocurrency law, sending it back to the National Assembly to be discussed. The veto was a partial one, with Cortizo having second thoughts about the legality of several, but not all, articles in the approved bill.

The announcement was made by Gabriel Silva, one of the proponents of the law, on social media. Silva criticized the decision taken by Cortizo, stating it was :

A lost opportunity to generate jobs, attract investment and incorporate technology and innovation in the public sector. The country deserves more opportunities and also financial inclusion.

Silva also explained he was studying the needed changes for the bill and that it would be going now to two committees of the National Assembly — the Government Commission and the Trade Commission. After this, it will have to be discussed twice, again. However, he did not indicate which articles of the law had been vetoed by Cortizo.

The so-called crypto law, which was the result of an amalgamation of two different cryptocurrency law projects, defined a blockchain-based ID system and also the use of blockchain technologies to improve the transparency of public spending.

The veto of a part of the law by Cortizo’s team was not a total surprise. The president of Panama had expressed concerns about the scope and some of the definitions of the law. In an interview given in May, when asked about the approval of the crypto law, Cortizo stated:

If I’m going to answer you right now with the information that I have, which is not enough, I will not sign that law.

Cortizo stated that unresolved money laundering issues would prevent the law from being sanctioned, as the country maintains a difficult relationship with the Financial Action Task Force, which has included it in its gray list along with countries like the Philippines, Yemen, and Turkey. However, he also pointed out that the bill was an innovative and good law.

A Chinese court has ruled that a virtual currency-based sale agreement is invalid.

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Image Credit: Dreamstime.com

A virtual currency cannot circulate in the market as a currency, so a vehicle sale contract in which the buyer agreed to pay in a privately issued digital currency is void, according to a Chinese court. A virtual currency, according to the court, does not have the same legal status as a national fiat currency.

A Chinese court has ruled that a vehicle sale contract, in which the parties agreed that the buyer would pay via a virtual currency, violated mandatory provisions of laws and administrative regulations and is therefore invalid. According to the court, a virtual currency “cannot be circulated in the market as [a] currency.”

As stated in one Chinese language report, the Shanghai court’s ruling was made after an aggrieved vehicle buyer sought the court’s intervention. According to the report, a buyer only identified as Huang had signed a sale agreement with Shanghai Automobile Service Co Ltd in May 2019.

As part of the agreement, Huang would purchase an Audi sports vehicle “with Yurimi as a currency payment.” Upon receipt of 1,281 units of the Yurimi virtual currency, the seller was, as per the agreement, expected to deliver the vehicle. However, after the seller failed to deliver, Huang sought redress via the Shanghai Fengxian Court.

Arguing his case before the court, Huang insisted that Yurimi is a virtual commodity that could be exchanged for goods thus it “does not violate the prohibitive provisions and should be valid.” However, in its counterargument, Shanghai Automobile Service Co Ltd insisted the sale agreement is an invalid contract and therefore should not be protected by the law.

In its ruling, the Shanghai Fengxian Court said the country’s token issuance and finance regulations that were implemented in 2017 stipulate that tokens or “virtual currency” used in the financing of token issuance, are not issued by monetary authorities hence they lack attributes such as “legal compensation and compulsion.”

In addition, such virtual currency does not have the same legal status as national fiat currency, the report said. This means they “cannot and should not be circulated in the market as a currency.”

According to the report, Huang, who was not pleased with the decision, went on to file an appeal with Shanghai No. 1 Intermediate Court. However, after reviewing Huang’s appeal, the superior court still ruled to uphold the lower court’s decision.

Kyrgyzstan’s Central Bank Issues a Warning Regarding Cryptocurrencies and Crypto Payments

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In light of the rising popularity of cryptocurrencies in Kyrgyzstan, the country’s central bank has issued a warning to citizens about the dangers of digital assets. Crypto payments are also illegal in the Kyrgyz Republic, according to the monetary authority.

Cryptocurrencies and other virtual assets are becoming more popular in Kyrgyzstan, according to the country’s central bank. Using them to buy or sell goods and services is still illegal, according to the regulator, with the Kyrgyz som remaining the country’s only legal tender.

The monetary authority also issued a warning about the risks associated with decentralized digital currencies, according to local media. “As a rule, no one is liable for cryptocurrency.” It is not financially supported. It has no real value because it is not linked to any currency or other asset,” the report stated.

This creates high risks of exchange rate volatility and loss of value, the National Bank of Kyrgyzstan (NBK) elaborated. It also pointed to the risks with settlements in cryptocurrency, stemming from its features and the absence of a “controlling central body.” The NBK further stated:

Therefore, we recommend citizens to be prudent and refrain from using cryptocurrency for payments and settlements. Users assume all possible risks and negative consequences when making settlements using cryptocurrency and virtual assets.

The authority’s statement comes after the central bank of neighboring Kazakhstan announced last week it’s examining the crypto market while emphasizing it’s too early to talk about legalization of cryptocurrencies like bitcoin.

Central Asia, where the two countries are situated, attracted crypto businesses last year, especially miners after China started cracking down on the industry in May, 2021. Both nations have since tried to limit mining by shutting down illegal crypto farms and raising electricity rates for authorized mining enterprises. Miners have been blamed for power shortages and damage to the electricity networks.

EU is close to an agreement on cryptocurrency regulations.

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Authorities in the EU are getting closer to a deal on a legislative package designed to regulate the crypto market and related activities in Europe comprehensively. According to reports in the media, an agreement on key legislation could be reached as soon as this month.

Bloomberg reported, citing knowledgeable sources, that representatives of relevant institutions in the European Union are nearing agreement on the Markets in Crypto Assets (MiCA) proposal, which aims to introduce union-wide rules for the crypto industry.

They chose anonymity to reveal that the French presidency of the EU Council and the European Parliament (EP) are now hopeful about resolving the issues that have slowed the draft’s progress. At two upcoming meetings, on June 14 and June 30, negotiators should do so.

According to sources familiar with the matter, the 27-member bloc’s member states and the Parliament continue to disagree on several aspects of MiCA. These include the potential inclusion of non-fungible tokens (NFTs) in the framework, as well as the supervision of crypto asset service providers (CASPs).

Officials are still discussing how to limit the use of stablecoins in payments. For example, there is an idea to introduce a ceiling for transactions that are not denominated in euros. It comes after last month’s collapse of the terrausd (UST) algorithmic stablecoin which affected crypto markets. Ensuring investor protection and gauging the impact of cryptocurrencies on financial stability are two other major considerations.

MiCA, which was first presented in 2020, was approved by the EP’s Committee on Economic and Monetary Affairs (ECON) in mid-March this year. The package entered the so-called trilogue stage of Europe’s legislative process later that month, during which the final draft must be coordinated between the European Parliament, the European Commission and the Council of the European Union.

A key element in the negotiations is also the need to address the environmental impact of crypto assets and some European lawmakers insist that the new legislation should take it into account. Provisions banning the energy-intensive proof-of-work mining sparked reactions from the Old Continent’s crypto community which complained they amounted to a bitcoin ban. The controversial texts were removed from the draft. France, which currently holds the EU presidency, is ready to accept a proposal by the Commission to disclose the energy consumption of CASPs.

EU members and the union’s legislature are also arguing about the inclusion of anti-money laundering provisions in the crypto legislation. National governments are pushing for a separate set of rules while the European lawmakers propose the establishment of a list of non-compliant CASPs.

In an ‘inflationary bull market,’ billionaire Stan Druckenmiller prefers Bitcoin to gold.

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Image Credit: Bloomberg.com

Stanley Druckenmiller, a well-known billionaire hedge fund manager, says that in an inflationary bull market, he would prefer to own bitcoin over gold “for sure.” He did say, however, that in a bear market, he would rather have gold.

In an interview with the Sohn Conference Foundation published on Saturday, Stan Druckenmiller discussed his thoughts on bitcoin and cryptocurrency investing.

Duquesne Family Office LLC’s chairman and CEO is Druckenmiller. He previously worked at Soros Fund Management as a managing director, where he was in charge of funds with a peak asset value of $22 billion. His personal net worth is currently $6.8 billion, according to Forbes’ list of billionaires.

“If you believe we’re going to have an irresponsible monetary policy and inflation in the future,” he said, adding, “you want to own bitcoin if it’s in a bull phase.” “You want to own gold if it’s in a bear phase for other assets,” he explained.

He emphasized that he believes this to be true because he has been observing the markets long enough. “I’m starting to believe what I’m observing,” Druckenmiller stressed, adding:

For sure, if I think we are going to have an inflationary bull market, I would want to own bitcoin more than gold.

“If I thought we are going to have a bear market — you know stagflation-type things — I would want to own gold,” he clarified.

The billionaire added, “That is my assumption going forward from this point, ” noting that his assumption is 85% based on what he has observed.

Commenting on cryptocurrency investing, the famous hedge fund manager shared that according to the “high-frequency signals” he follows:

There certainly seems to be a strong correlation between crypto and the Nasdaq.

As for the future of cryptocurrency, he said: “I will be very surprised if blockchain isn’t a real force in our economy — say five years from now to 10 years from now — and not a major disruptor.” He elaborated: “Companies that will have been founded between now and then will do very well, but they will also challenge things like our financial companies and do a lot of disruption.”

Druckenmiller concluded: “So, I find crypto interesting.” However, the billionaire pointed out that his 69th birthday is coming up in a couple of weeks, noting:

I’m probably too old to compete intellectually with the young people in this space but I’m certainly monitoring it.

Lawsuits Concerning Cryptocurrencies Criminal Cases in Russia are increasing by 40%.

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According to a new study, Russian courts are hearing an increasing number of cases involving crypto assets. About two-thirds of them were started under the country’s Criminal Code, but civil cases also make up a significant portion.

Over the course of last year, the number of lawsuits related to cryptocurrency, digital asset exchanges, and coin minting increased dramatically in Russia, reaching 1,531. The figure comes from research conducted by RTM Group, a cybersecurity firm, and was reported by Izvestia this week.

According to the daily, the majority of these cases, 954 in total, were started under various articles of the Russian Criminal Code. Another quarter of the cases (365) are civil cases, nearly one-tenth (141) are bankruptcy cases, and 5% (71) are administrative cases, according to the article.

The authors of the study note that most often cryptocurrency appears in criminal cases related to drug trafficking as those behind such deals would like their payments to remain anonymous — 738 such cases were filed last year. Other criminal proceedings include the laundering of illicit funds using digital coins.

Claims against unjust enrichment through crypto transactions form the majority of civil law disputes (42 cases). A common scenario is when a person transfers money to a third party to buy cryptocurrency but later receives a smaller amount than expected or agreed.

Meanwhile, the number of bankruptcy cases related to ownership of cryptocurrency has doubled in 2021, the researchers revealed. In these proceedings, the Russian judiciary refers to crypto assets as property and the sides are required to provide documents proving they own the coins.

The illegal use of electricity for cryptocurrency mining is considered a civil offense in Russia which entails the collection of debt. During the examined period, Russians running underground mining facilities had to pay 61.5 million rubles (over $1.1 million at current rates) in nine such cases.

To prepare its report, RTM analyzed published acts of courts of general jurisdiction and arbitration courts as well as information obtained from the official correspondence of various departments. The results from its study appear as authorities in Moscow continue to debate over the legal status cryptocurrencies should have in Russia.

“Cryptocurrency is very risky,” according to US Treasury Secretary Janet Yellen, and is unsuitable for most retirees.

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Cryptocurrency, according to US Treasury Secretary Janet Yellen, is a “very risky investment” that she would not recommend to most people saving for retirement. Yellen did, however, mention that Congress could limit the types of investments that can be made in retirement accounts, such as 401(k) plans.

The question of whether Americans should be able to invest their retirement funds in cryptocurrencies is still being debated.

At a New York Times event on Thursday, US Treasury Secretary Janet Yellen was asked about Fidelity’s announcement to allow bitcoin as an investment option in 401(k) plans.

Yellen replied:

It’s not something that I would recommend to most people who are saving for their retirement … To me it’s very risky investment.

Fidelity’s announcement followed guidance issued by the Labor Department (DOL) warning 401(k) plan administrators about allowing cryptocurrencies in retirement plans. Fidelity is one of the biggest 401(k) plan administrators.

Ali Khawar, Acting Assistant Secretary of the DOL’s Employee Benefits Security Administration, said the Labor Department has “grave concerns with what Fidelity has done.” He stressed, “cryptocurrencies can present serious risks to retirement savings.”

Treasury Secretary Yellen also noted Thursday that Congress could regulate what assets could be included in retirement plans like 401(k). Commenting on whether Congress should take action, Yellen clarified:

I’m not saying I recommend it, but that to my mind would be a reasonable thing.

The Labor Department’s efforts to restrict Americans from putting crypto in retirement accounts have upset some lawmakers. In response, U.S. Senator Tommy Tuberville (R-AL) introduced the Financial Freedom Act to prohibit the DOL “from issuing a regulation or guidance that limits the type of investments that self-directed 401(k) account investors can choose through a brokerage window.” Furthermore, the Labor Department has been sued over its crypto guidance.

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